I am a newbe, too, Charlie. S so don’t listen to me. I have already made my first mistake. "
Andy,
Don’t deprecate your skill set. Most investors don’t know what you know about options. Nor likely, do they have your skills in using financial statements.
Arindam
Thanks Arindam but the more I learn about investing and life the more humble I get. Because I realize how much more I have to learn.
Andy
“The more I learn about investing and life, the more humble I get.”
Andy,
‘Humble’ is good. ‘False modesty’ isn’t. LOL. Know your strengths. Fix your weaknesses.
Arindam
Smiley faces have been mentioned a lot so I’d just want to point out that they simply indicate the highest and the lowest point in the chart.
Here’s DDOG a while back for example:
If that was today, we’d seen that DDOG just made a new low for the period we’re looking at. But if we zoom out and look the 1 year chart we see that it went on going lower:
So those smiley faces are just a visual cue to quickly spot where the high and the low is. Same goes for smoothed HA bars, i.e highest and lowest point in the chart.
Incidentally, those lines I added for clarity happened to show something important. Note how when a low that serves as support is broken, it tends to become resistance. You can often find these levels, years back. Here’s a more elaborate 3yr chart:
In hindsight, we can see that DDOG did a pretty good job of warning us four times at ~$185, telling us “dude, we’re going from bubble to bear market, this is as far as I go”. And - in hindsight - did a pretty good job of showing us the consequences of our disobedience. The latest low bounced off the low of the ER pop in May 2020.
Thank you Raylight,
Those smiley faces do move depending on the range of your charts. But I believe what Quill is doing is looking at a 3 month chart and wanting to be in when they do not move anymore. Look at this.
So with swav the smiley face came on the 24th, I jumped in on the 26th, at $193.73 so I am down about 3 percent. According to Quill, I believe I could have gotten in on the 25th.
I also jumped onto Enph. But the problem with enph is that I hadn’t waited for the smiley face to be left behind to show the stock was making Higher Highs and Higher lows. It was like you showed, moving down every day. That is the problem trying to get into a stock that is in a down trend. I wonder if it would be better to look for stocks that are in an uptrend. Going into a heat map and seeing what sectors are in the green .
Andy
